On 7 November 2018, the Australian Taxation Office (ATO) issued a notice on the update of the regulations for interest on overpayments and early payments.
Interest on Overpayments and Early Payments Regulations – updated
The Taxation (Interest on Overpayments and Early Payments) Regulations 2018 (2018 IOEP Regulations) were registered on 14 September 2018.
These regulations help determine entitlement to interest where correlative double tax relief has been provided.
These regulations replace the former Taxation (Interest on Overpayments and Early Payments) Regulations 1992 that have been repealed.
The 2018 IOEP regulations improve on the former regulations by:
- repealing redundant regulations
- simplifying the structure and language for ease of navigation and understanding
- ensuring all specified double tax agreement names and relevant articles prescribed are up-to-date, including removing obsolete references.
The 2018 IOEP regulations apply to:
- income derived on or after 15 September 2018
- income derived before 15 September 2018 if a double tax agreement was in force at the time the income was derived – as listed in Part 2 of the 2018 IOEP Regulations – it was not listed in the former regulations.
The former regulations apply to income derived before 15 September 2018 for double tax agreements listed in these regulations.